Cenovus Energy announced a 2026 capital budget ranging from $5.0 billion to $5.3 billion, with $850 million earmarked for the newly acquired Christina Lake North asset and $1.2 billion to $1.4 billion allocated to growth projects such as the Foster Creek Optimization and West White Rose expansions. The plan also includes $300 million to $400 million for safety and reliability initiatives across upstream and downstream assets.
The company projects oil‑sands production of 755,000 boe/d to 780,000 boe/d in 2026, while non‑fuel operating costs are expected to stay in the $8.50/bbl to $9.50/bbl range. Downstream throughput is forecast at 430,000 bbl/d to 450,000 bbl/d, and U.S. refining output is projected at 325,000 bbl/d to 340,000 bbl/d. These figures reflect a steady‑state production profile that balances the integration of the MEG Energy acquisition with ongoing optimization of existing assets.
Cenovus plans to reduce net debt from above $6 billion toward a $4 billion target, a goal it achieved in July 2024. Until the target is reached, 50–75 % of excess free cash flow will be returned to shareholders, with the remainder directed to debt reduction; once the $4 billion threshold is met, 100 % of excess free cash flow will be returned to shareholders. The guidance signals a disciplined approach to capital allocation, prioritizing debt deleveraging while maintaining a robust shareholder return policy.
The guidance is framed by the company’s recent acquisition of MEG Energy, which closed on November 13, 2025, and the completion of the Foster Creek Optimization Project in late November 2025. First oil from the West White Rose field is expected in the second quarter of 2026, and the Christina Lake North expansion is set to add significant output. These projects underpin the company’s strategy to finish its three‑year growth cycle and accelerate volumes from key assets.
Jon McKenzie, Cenovus President and CEO, said the company is “well positioned to ramp up volumes from Foster Creek and West White Rose and advance the Christina Lake North expansion, while balancing debt reduction with shareholder returns and maintaining a resolute focus on controlling costs.” The statement underscores management’s confidence in execution and its commitment to delivering value through disciplined capital discipline and strategic growth.
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